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Coke CEO: Sodas not to blame for U.S. obesity

Muhtar Kent tells beverage industry conference that weight control is ‘systematic lifestyle issue’

The Atlanta Journal-Constitution

Tuesday, October 21, 2008

Las Vegas — Coca-Cola Co.’s top executive urged the beverage industry Monday to step up its fight against claims that it bears much of the blame for the nation’s obesity problem, especially since the souring economy and health concerns over carbonated beverages could shrink U.S. drink sales this year.

In one of his first major speeches since taking the top job at the world’s biggest beverage company in July, Coca-Cola CEO Muhtar Kent told industry leaders gathered here that it was “absolutely imperative” for them to work together to “return responsible discourse back into the obesity debate.

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ADRIAN MOSER/Bloomberg News

Muhtar Kent became Coca-Cola’s CEO in July.

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“People need to understand that obesity is not about a beverage or a candy bar or a restaurant meal or a Play Station game or about working longer hours,” Kent said in prepared remarks for his keynote address at the InterBev 2008 conference. “It’s a systematic lifestyle issue that we must address individually and collectively as a society.”

Kent pointed out in his speech that calories in non-alcoholic drinks have declined by nearly 25 percent in the past decade. Not coincidentally, his speech was preceded by a pitch from the Corn Refiners Association, which has launched a major campaign to downplay health concerns surrounding the high-fructose corn syrup used in many soft drinks.

Some critics were quick to take issue with Kent’s comments.

“It sounds like the CEO of Coke is sticking his head in the sand by denying that obesity is related to soda pop,” said Michael Jacobson, executive director of the Washington, D.C-based Center for Science in the Public Interest, a longtime soft drink critic. “(Non-diet) soda pop isn’t the only cause of obesity, but it’s a very significant contributor.”

Health concerns and a slowing global economy are partly to blame for what’s expected to be the first-ever decline in U.S. beverage sales this year, according to research and consulting firm Beverage Marketing Corp.

Despite sales increases for water and health-related drinks, an expected 3 percent decline in carbonated beverages such as Coke and Pepsi will likely drag overall sales of non-alcoholic beverages down by about 1 percent this year, Gary Hemphill, managing director of Beverage Marketing Corp., said at the InterBev conference.

Atlanta-based Coca-Cola, like other companies, is beginning to take steps to address a slowing economy. The company has said it plans to cut $500 million in expenses by 2011, in part through job reductions.

But Coca-Cola has no plans for massive layoffs like the 3,300 job cuts that archrival PepsiCo Inc. announced recently, Coca-Cola spokesman Dana Bolden said Monday.

Instead, Bolden said, Coca-Cola’s expense-cutting is being handled on a department-by-department basis. As a result, some jobs may be cut from various parts of the company’s business over the next several years, but it won’t be on a wide-scale basis like at PepsiCo, Bolden said.

Coca-Cola also expects to find significant savings in other parts of the company, Kent said in his speech.

“We have a $50 billion system-wide global supply chain,” he said. “Optimizing our supply chain to create even a 2 percent saving would result in a billion dollars straight to our bottom line.”

Coca-Cola also is benefiting from growth in overseas markets that is helping offset slowing U.S. sales.

Last week, it announced a better-than-expected 14 percent increase in third-quarter net income, mainly because strong growth overseas offset slowing domestic growth.

While his company and the rest of the beverage industry may be facing difficult economic times, it’s not the first time, Kent said.

“It’s tough out there,” he said. “I know it. You know it. It’s probably true that it will get even tougher before it gets better.”

Even so, Kent said that current economic problems and sentiment in America are not much different than 30 years ago, when he first joined Coca-Cola.

“As scary as it sounds, we’ve been in this place before and we prevailed,” Kent said. “And we will prevail again.”

Comments

By Paul Murphy

Nov 19, 2008 1:47 PM | Link to this

CHOICES and CONTROL
I have been attending treatment for a BINGE EATING DISORDER . I thought of food 24 7 . Every single minute of the day I was either starving or full . I began to learn about mechanical eating and I stopped skipping meals .I always skipped meals ,so that I could binge eat.
I was not given clear data on this eating disorder . I did see a ditician in 97 ,but she did not have a screening tool to catch my though process. It was my thought process that interfered with my efforts to eat healthy .
Am I the only person in the world to have this issue???? I doubt that very much . I am working on a healthy food marriage ,and I felt I needed to create a video about this issue . I hope you will take a look at all the materials I have on youtube and facebook.
EAT LESS MOVE MORE.
Thanks Paul

By Paul Murphy

Nov 17, 2008 8:43 AM | Link to this

EAT LESS MOVE MORE .
There are many many factors when discussing OBESITY. IS FOOD A SUBSTANCE ?????
I mood altered with foods ,and self hated using them . I am working to build a healthy food marriage. I want some clarity on the issue ,so that others can explore their food relationship.
I have countless articles on my facebook page and I welcome you to view all materials . I want the freedom and the knowledge to select foods ,but I also want to know the calorie count . If I want a giant burger and fries do I not deserve to know the counts of these items .
Lets build a plan based on objectives ,and clarity with a direct purpose. EAT LESS MOVE MORE . That is pretty direct.
OBESITY IS A BY PRODUCT .
FROM WHAT FACTORS ?????
Thanks Paul

By Paul Murphy

Nov 13, 2008 10:36 AM | Link to this

30,000 3 year old kids in the U S A ,currently at least 30 pounds overweight .
DOES LIFESTYLE AND BLAMING THEM FIT ???? BLAME IS PART OF THE ISSUE .
I used foods to self medicate ,and I reached 350 pounds . I had to learn how to nourish my body every few hours ,and I continue to do so . I do not care about a scale ,because I am far too busy walking each day.
OBESITY IS A BY PRODUCT .

Thanks Paul
OBESITY THUNDER BAY is on youtube or find me on facebook. Someone needs to stand up for these children,and waiting for governements will not address the real issue .

By Paul Murphy

Nov 13, 2008 10:29 AM | Link to this

OBESITY
Lets discuss this issue in an open forum. IS FOOD OUR NEXT TABBACCO ????? EAT LESS MOVE MORE . This is a clear statement ,and it provides a starting point. Obesity is confusing ,and our response is equally confusing. AGAINST OBESITY NOT AGAINST OBESE PEOPLE. This will need clear direction ,and clear tactics to address this health problem.
Please see OBESITY THUNDER BAY on youtube . You can also see more materials on Facebook. We need to stop the blame and begin a real plan of action. Obesity is destroying lives ,and while we discuss who ,or what is to blame people are dieing.
I am far too busy walking 2 or 3 hours a day to be focusing on a scale,or a BMI tool. I hope you will join me in this effort .
Thanks Paul
I am building a healthy marriage with foods/all foods in balance. If I want a soda ,I sit down and enjoy it . I just will try to have a smaller size drink ,and I will enjoy it with NO GUILT .

By Jennifer

Nov 4, 2008 1:16 AM | Link to this

Soda is liquid Satan. Read the book Skinny ****** it will tell you all you need to know about soda. There is nothing in soda that should be in your body. If you can drink soda without gaining an ounce, good for you, but don't think it isn't wrecking havoc internally otherwise.

By Oscar

Oct 22, 2008 11:50 AM | Link to this

Obviously Coca Cola is not responsible for US obesity. People's consumption habits are. Unfortunately for Coke, one of the easiest and most beneficial lifestyle changes for people fighting obesity, is to reduce or eliminate their consumption of soda.
Moderation in consumption is good for the consumer, not so good for Coke.

By K Sekhar

Oct 22, 2008 4:58 AM | Link to this

I wonder how much Coke Muhtar Kent and his children drink a day ?

Sekhar

By rucognizant

Oct 21, 2008 7:23 PM | Link to this

Absolutely Suling!
I'm living proof!
I grew up during sugar rationing , in the Garden State LOVING vegetables...........Although my Mother was a regular supporter, we weren't allowed cokes freely untill our early teen years.
I am a high energy person and my work was physically active not at a desk. There is NO HISTORY OF DIABETES IN MY FAMILY, but a slight tendancy toward weight gain. I went back to college on my 50's short on time, short on money, I ate all prepared foods from the market, in the late 90's. and until the present, while trying to start a new business( for the years before that I cooked most of my meals from scratch.)
Now in 2008, I have pre diabetes high blood sugar......
HFCS, BLOCKS THE bodies natural insuline activity!

By mary

Oct 21, 2008 6:47 PM | Link to this

Lighten up, everyone, it's a soft drink.

Personally I prefer the well water I grew up with, but even that is no good anymore because companies have discovered they can buy a small piece of land, drain and bottle the stuff and sell it... leaving the water reservoirs in a region depleted, and piles of plastic bottles in landfills and swirling around in the oceans.

Shame on who??? (A: The consumer...)

Now, why doesn't anyone on Georgia want to entertain a can/bottle deposit program? I might buy some Coke products occasionally if I didn't see them most frequently lining the banks of the Chattahoochee.

By Mary

Oct 21, 2008 6:44 PM | Link to this

Lighten up, everyone, it's a soft drink.

Personally I prefer the well water I grew up with, but even that is no good anymore because companies have discovered they can buy a small piece of land, drain and bottle the stuff and sell it... leaving the water reservoirs in a region depleted, and piles of plastic bottles in landfills and swirling around in the oceans.

Shame on who??? (A: The consumer...)

Now, why doesn't anyone on Georgia want to entertain a can/bottle deposit program? I might buy some Coke products occasionally if I didn't see them most frequently lining the banks of the Chattahoochee.

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